FINTOP Capital Company Profile

Background

FINTOP Capital is a venture capital firm specializing in early-stage Financial Technology (FinTech) companies. With over $700 million in committed capital across five funds, FINTOP leverages decades of FinTech founding and operating experience to partner with innovative entrepreneurs, aiming to advance the financial services sector. The firm focuses on B2B software companies that offer essential solutions to real-world problems, emphasizing a partnership-first approach to foster growth and innovation.

Key Strategic Focus

FINTOP targets B2B software companies with predictable revenue streams, particularly those generating over $1 million in recurring revenue. The firm seeks products that provide indispensable solutions to genuine challenges and are led by experienced industry veterans. FINTOP's average initial investment ranges from $3 million to $5 million, emphasizing efficient use of capital. The firm's extensive network offers significant benefits to its portfolio companies and serves as a primary source of deal flow.

Financials and Funding

FINTOP Capital has successfully closed multiple funds:

Fund I (2016): Closed with over $50 million, making 13 investments, including successful exits such as DealCloud (acquired by Intapp) and Solovis (acquired by Nasdaq).

Fund II (2020): Closed at $126 million, exceeding its initial target of $100 million.

Fund III (2022): Closed at $220 million, surpassing the $200 million target.

JAM FINTOP Banktech (2021): A $150 million fund in partnership with JAM Special Opportunity Ventures, focusing on accelerating technology adoption at community banks.

Pipeline Development

FINTOP's portfolio includes a diverse range of companies at various stages of development. Notable investments include:

Plinqit: A personal savings app based in Michigan.

Freight Science: A St. Louis-based data science platform for the trucking industry.

Compliance.ai: A Silicon Valley-based automated regulatory and compliance platform for the financial services industry.

Amaryllis Payment Solutions: A payment platform company based in West Palm Beach, Florida.

Xelix: A London-based platform focused on accounts payable.

These investments reflect FINTOP's commitment to supporting innovative solutions across the FinTech landscape.

Technological Platform and Innovation

FINTOP Capital distinguishes itself through its deep industry experience and strategic partnerships. The firm's collaboration with JAM Special Opportunity Ventures led to the creation of JAM FINTOP Banktech, a fund designed to accelerate technology adoption at community banks. This initiative underscores FINTOP's commitment to fostering innovation within the financial services sector.

Leadership Team

FINTOP's leadership comprises seasoned professionals with extensive experience in FinTech:

Joe Maxwell: Managing Partner and Co-founder, with a background in building and exiting successful FinTech startups.

Rick Kushel: General Partner, bringing over three decades of experience in building companies such as iLevel Solutions and DealCloud.

John Philpott: Partner, with experience in companies like Interactive Advisory Software and S1 Corporation.

Rick Holton: Partner, also managing Holton Capital Group and a former general partner of a St. Louis-based VC.

Jim McKelvey: Co-founder and General Partner, also co-founder and director of Square Inc.

Jared Winegrad: Partner, a founding member of FINTOP, promoted to partner in 2022.

Chris Haley: Partner, a FinTech operator with executive experience at companies like Black Diamond and Knowledge Infusion.

Leadership Changes

In 2022, FINTOP announced the promotion of Jared Winegrad to Partner. Winegrad, a founding member of FINTOP, has played a key role in several of the firm's investments, including Beanworks and Kindful. Additionally, Chris Haley joined FINTOP as a Partner, bringing extensive experience in the FinTech space.

Competitor Profile

Market Insights and Dynamics

The FinTech venture capital market is characterized by rapid innovation and significant investment activity. The global FinTech market is projected to reach $305 billion by 2025, driven by increasing adoption of digital financial services and technological advancements.

Competitor Analysis

Key competitors in the FinTech venture capital space include:

Andreessen Horowitz: Known for substantial investments in FinTech startups, focusing on disruptive technologies.

Sequoia Capital: Invests across various stages, with a strong presence in the FinTech sector.

Ribbit Capital: Specializes in early-stage FinTech investments, emphasizing global financial services innovation.

QED Investors: Focuses exclusively on FinTech, with a portfolio spanning lending, payments, and insurance.

These firms share a focus on identifying and supporting innovative FinTech companies, contributing to a competitive investment landscape.

Strategic Collaborations and Partnerships

FINTOP has engaged in significant collaborations to enhance its market position:

JAM FINTOP Banktech: A $150 million fund in partnership with JAM Special Opportunity Ventures, aimed at accelerating technology adoption in community banks.

Infinant Investment: In March 2023, FINTOP, along with JAM FINTOP Banktech, invested in Infinant, a cloud-based platform for banks to launch and scale their banking-as-a-service and embedded programs.

Cardo AI Investment: In November 2024, FINTOP co-led a $15 million Series A funding round for Cardo AI, a technology platform for asset-based finance and private credit.